r&d tax incentive: s 47e(d)...r&d tax incentive: o,„,, table 4 indirect compliance...

R&D Tax Incentive:

Released under the FOI Act - DIIS

s 47E(d)

R&D Taxl Incentive: Workload Portfolio 2016/17 Protected


s 47E(d)

Protected R&D Tax Incentive:


s 47E(d)

R&D Tax Incentive: o,„,,

TABLE 4 Indirect Compliance Activity 2014-15 & 2013-14 Awareness Raising and Stakeholder Engagement * note that this does not include other indirect activities

such as guidance development and business improvement.

Awareness Raising and Stakeholder Engagement - State & Territory Offices - 2014-15

Information Sessions to Prospective Customers

YTD

Briefings to an Allied Agency (Individuals or

Small Groups) YTD

Briefings to a Company, and/or Tax Agent

(Individuals or Small Groups)

YTD

Information Sessions/

Workshops to audience of Tax

Agent Representatives YTD

Information Sessions/ Workshops to audience of

Allied Agency Representatives

YTD

Representation at Stakeholder Events

YTD

No. of Presentations

No. of Attendees

No. of Briefings

No. of Attendees

No. of Briefings

No. of Attendees


No. of Attendees


No. of Attendees

No. of Events

No. of Attendees

NSW 9 156 6 45 6 630 7 154 1 1 33 1,138

VIC 16 25 5 215 14 235 7 151 1 100 50 6,078

QLD 35 1,696 88 274 124 154 8 84 1 3 49 5,405

WA 18 92 59 330 60 91 3 32 8 288 31 4,060

SA/NT 2 80 2 5 22 34 5 36 0 0 5 248

TAS 0 0 0 0 16 25 4 17 1 2 1 150

ACT 0 0 0 0 0 0 0 0 0 0 0 0

Total 80 2,049 160 869 242 1,169 34 474 12 394 169 17,079

Awareness Raising and Stakeholder Engagement - State & Territory Offices - 2013-14

Presentation to Prospective Customers

YTD

Presentation to Allied Agency Representatives

YTD

Provision of Program Briefing to Company,

Consultants or Accountants YTD

Delivery of Workshops toConsultants 8,/or

Accountants YTD

Delivery of Workshops to Allied Agency Representatives

YTD

Representation at Stakeholder Events

YTD

No. of Workshops

No. of Attendees

No. of Briefings

No. of Attendees

No. of Events

No. of Attendees

No. of Events

No. of Attendees

No. of Workshops

No. of Attendees

No. of Events

No. of Attendees

ACT 10 48 6 23 5 25 2 16 1 11 3 121

NSW 9 61 3 34 7 48 2 12 0 0 16 129

VIC 15 211 0 0 7 19 6 223 0 0 9 798

QLD 32 1,257 113 355 181 227 8 37 5 11 44 4,979

SA 5 540 2 33 20 90 3 20 0 0 10 1,200

WA 14 92 22 435 16 54 8 113 6 162 30 3,080

TAS 0 0 0 0 22 30 0 0 0 0 0 0

Total 85 2,209 146 880 258 493 29 421 12 184 112 10,307

Protected — Department of Industry and Science, August 2015 14IPage


Instructions: Enter Me; Character short fol roarea at 'Fr Ohs Lot Lyda% Me snook Tam lot./ steps per Insluellon Sheol

National Eicom Statistics for Jun 2015


s 47E(d)

Instructions: DOW Chi/441•14110.11.011011210. r3'IT0sw4 .04a* Ile Sheen Then DARN rep, per 014110011 $100

National Excom Statistics for jun 2016


s 47E(d)

Instructions: Enter the 3 Character short Corm month at 'Fr (This Will update the street) Then (Now steps per Induction Street

National PAC Statistics for Jun 2017 Released under the FOI Act - DIIS

s 47E(d)

For Official Use Only

AusIndustry Programme Performance Report 1 of 2

AusIndustry Programme Performance Report

Reporting month June 2015

Programme name 2.1 – Research and Development (R&D) Tax Incentive/Tax Concession

Outcome Programme 4.4 (Business Research, Development and

Commercialisation) – R&D Tax Incentive / Tax Concession

Programme status Entitlement program open to (new and ongoing) registrations

Performance measure The 2014-15 PBS Performance Measures are: (1) R&D expenditure

registered with AusIndustry in order to claim the Tax Incentive or Tax

Concession through their annual tax returns; and (2) Number of entities

registering R&D expenditure with AusIndustry in order to claim the Tax

Incentive or Tax Concession through their annual tax returns.

Programme

description

The R&D Tax Incentive programme is the Australian Government’s

principal measure to encourage industry investment in research and

development, offering refundable and non-refundable tax offsets.

General Manager David Wilson, GM R&D Tax Incentive, ph. (02) 6213 6025,

mobile 0451 633 818

Programme Manager Cathy Mammoliti, A/g Manager, R&D Tax Incentive Programme

Management, ph. (02) 6213 7414

Policy Partner Mark Johnson, Manager Business R&D, ph. (02) 6213 7620, mobile

0412 677 364

Administered funding

profile

2014-15 2015-16 2016-17 2017-18

$1,673,000 $4,773,000 $2,073,000 $2,073,000

Current Issues Risks associated with Service Delivery Activities -

Registrations: For FY2014-15, 84% of applications have been

processed within the Service Standard of 10 business days. Staffing


s 47E(d), s47J(1)



issues in the first half of the FY resulted in a slippage in processing

times, however the Service Standard has been met since January 2015.


s 47E(d)



Programme Performance Report

Reporting month May 2016

Programme name 3.1 – Research and Development (R&D) Tax Incentive/Tax Concession

Outcome Programme 4.4 (Business Research, Development and

Commercialisation) – R&D Tax Incentive / Tax Concession

Programme status Entitlement programme open to (new and ongoing) registrations

Performance measure The 2015-16 PBS Performance Measures are: (1) R&D expenditure

registered with AusIndustry in order to claim the Tax Incentive or Tax

Concession through their annual tax returns; and (2) Number of entities

registering R&D expenditure with AusIndustry in order to claim the Tax

Incentive or Tax Concession through their annual tax returns.

Programme

description

The R&D Tax Incentive programme is the Australian Government’s

principal measure to encourage industry investment in research and

development, offering refundable and non-refundable tax offsets.

Programme

evaluation status

A Review of the R&D Tax Incentive was announced during the launch of

the National Innovation and Science Agenda (NISA). The Review was

asked to identify opportunities to improve the effectiveness and integrity

of the programme, including by sharpening its focus on encouraging

additional R&D expenditure. The earlier departmental programme

review activities undertaken during 2015 were incorporated into the

Review.

The Review concluded in April 2016, and the Government was

considering its response when parliament was prorogued

on 17 April 2016.

An internal audit, jointly with ATO, is planned for Q3, 2016-17.

Accountable Officer Sarah Clough, General Manager R&D Tax Incentive Branch,

ph. (02) 6102 9596

Programme Manager


s 47E(d), s47J(1)

s 22



Policy Partner

Administered funding

profile

2015-16 2016-17 2017-18 2018-19

$4,773,000 $2,073,000 $2,073,000 $2,073,000

Dashboard data comments


s 22

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s 47E(d)



1. Registrations: There are currently 12,982 registrations (14,801 R&D-performing entities) for the 2014-15 income year.

4. IMG: The most recent Incentive Management Group meeting was held on 10 June 2016 in the Queensland State Office.


s 47E(d)


1

Program Performance Report

Reporting month May 2017

Program name Research and Development (R&D) Tax Incentive/Tax Concession


s 47E(d), s47J(1)

s


Program Performance Report 2 of 4


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Risk Filters (R&D Tax Incentive): Definitions/Scores


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R&D Tax Incentive Large Business Review Standard Operating Procedure (SOP)


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Large Business Review Process Map

Desk-based registration details check

Allocation of Large Business Review File (this may include a brief on the ‘reasons for engagement’ including how the ATO

may be involved)

Create Registration Review in TaRDIS

Registration ReviewSelect Projects to Review

(could be informed by briefing)

Mark selected projects in TaRDIS and

recommend the Registration Review

go to Activity Review

Request/Arrange Company VisitPrepare for and undertake the visitPrepare and agree agendaMeet with company and advisers

Receiving satisfactory information and undertaking research

Follow-up e-mail to confirm documentation requests

Review information – is it sufficient to address concerns?

Further information required?Request further

informationYes

Complete the Report Template

No

Peer Review & ApprovalDecide Risk Rating

No further action.Monitor

Recommend system or process change.

Review next rego

Amend registration and tax adjustment

Low Medium High

Discuss findings, outcomes and further action with the ATO

Company agrees high risk rating and recommendations

Discuss outcomes and follow-up with company and adviser

Finalise and Record Large Business Review Information

No further action

Yes

ATO & AusIndustry consider whether to undertake finding

No

No

Initiate Finding Process

Yes

Large Business Review SOP Page: 3 of 21

Last updated: Version: 0.1 (04/2014)

Author:


s 22


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R&D Tax Incentive Compliance Monitoring Activity Review

Standard Operating Procedure (SOP)


s 47E(d)


s 47E(d)

Compliance Continuum – Activity Review SOP Page: 3 of 23

Last updated: July 2013

Author: R&D Incentives Program Management (supported through IMG)

Process map

7. Record Information

(Data Management)

Commence Activity Review Phase

Letter to company requesting a meeting to discuss specific

Issues / Activities

No Further Activity Undertake Statutory Review

1. Follow-up phone call to Company to arrange visit

4. Review additional information

Document Produced

Decision

Data

Process defined

elsewhere

Terminator

Legend

Meeting Arranged?

Reminder Letter advising of outcome if meeting not

arrangedNo

3. Meet with Coy to discuss Specific Issues / Activities

Yes

Within 7 days

Meeting Arranged?Yes

No Response Letter advising that the coy may be subject to

a Statutory Assessment

No

6. Decision

7. Notify company of the completed process (including any relevant education info)

7. Notify company that a Statutory Assessment may be

undertaken

Low risk High risk

5. Complete Report & Recommendation 5. Peer Review / Discussion

2. Prepare for Company Visit

7. Notify company of issues, how they should be resolved, and the alternate resolution

process to be followed.

Medium risk

Identify if an alternate resolution process may

be appropriate

Yes No

Undertake chosen alternate resolution

process



s 47E(d)

Attachment A


s 47E(d)


s 47E(d)

R&D Tax Incentive Compliance Monitoring

Desk Review Standard Operating Procedure (SOP)


s 47E(d)


s 47E(d)

Compliance Continuum – Desk Review SOP Page: 3 of 16



Process map



s 47E(d)

R&D Tax Incentive Compliance Monitoring

Registration Review Standard Operating Procedure (SOP)


s 47E(d)


s 47E(d)

Compliance Continuum – Registration Review SOP Page: 3 of 14



Process map

Record Information(Data Management)

Commence Registration Review Phase

No Further Activity Undertake Desk Review

Document Produced

Decision

Data

Process defined

elsewhere

Terminator

Legend

Decision

Notify company of the completed process (including any relevant education info)

Notify company that a Desk Review will be undertaken (requesting further specific

information)

No Issues Issues

Create / Obtain file for Registration

Initial Review of registration data

TaRDIS check

Data Check

Project / Activity Evaluation

Complete Report and prepare recommendation

Peer Review / Discussion

Education Letter required?

Yes No



s 47E(d)

Pre-registration Review (PRR) Standard Operating Procedure (SOP)


s 47E(d)


s 47E(d)

Attachment A

Application received

YES(or directlyselected by delegate)

Pre-registration Review (PRR) – Process Flow Chart v1.0 (09/2013)

PHASE 1Initial review and

case selection(National Office)

PHASE 2Desk-based review

(State or Territory Office)

PRR completed

NO

InternalReview(s30)

YES

accepts

Desk Reviews:Internet search;

Corporate Score Card;cross-check

other grants;known ATO issues;compliance history;

supporting evidence;Google Maps;

Company visitReview

R&D evidence;Phone call; Site visit;Prepare

questionnaire;

ComplianceContinuum

PHASE 3Pre-registration

ReviewSite Visit

PRR completed

Letter: Refusal of Registration (s27)

Letter to Customer

Fraud Sectionwill not

investigate

Risk issues

identified?

Evidence of potential fraud or acute risk?

TARDIS Risk score

Delegate reviews

registration

Fraud Sectionreviews

Delegatedoes not support

registrationDoes

applicationtrigger risk indicators?

Refundable offset

application?

Recommendationto delegate:

refer to Fraud Section

Fraud Section investigates

if fraud investigation

Doescustomer appeal?

PRR completed

Recommendationto delegate (register)

Legend

Action

Finished

Terminator

Decision

Start Process

Document created

Automated

NO

No

Check of currency of ABR/ASIC registration

completed by Registration Team

YESif

potential fraud

Evidence of potential

fraud

No

Delegatesupports

registration

Delegate refuses

registration

Recommendationto delegate: commence compliance

YESif

acuterisk


Yes

Further evidence needed?

No

Visitcompany

ContactCompany and review further

evidence

Yes

Evidence of potential fraud or acute risk?


No

Delegate registers company

If ‘yes’,compliance commences immediately


SOP –Post-Registration Finding (Section 27J of the IR&D Act)

Program R&D Tax Incentive

Version No 2.3

Effective Date 24 July 2015

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s 47E(d)

PROTECTED

Internal Review of Reviewable Decisions under Section 30D of the

Industry Research and Development Act 1986 (the IR&D Act)

Standard Operating Procedure (SOP)


s 47E(d)

PROTECTED


s 47E(d)


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r&d tax incentive: s 47e(d)...r&d tax incentive: o,„,, table 4 indirect compliance...

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